PayPal stock bombs after Pinterest deal announced

PayPal announces Pinterest deal and stock plummets.

Also #Paypal has horrible customer service. The Paypal Pinterest deal appears to be one that many experts don’t agree with.

REINHARDT KRAUSE04:05 PM ET 10/21/2021
Many analysts view PayPal Holdings’ (PYPL) possible acquisition of social media firm Pinterest (PINS) favorably, as the deal is expected to expand PayPal’s role in online shopping and advertising. But PayPal stock and PINS stock both fell on Thursday amid questions over a deal’s structure.

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PINS stock dipped 2.1% to close at 61.35 on the stock market today after rallying nearly 13% on Wednesday. PayPal stock tumbled 5.9% to 243.21 after falling nearly 5% on Wednesday when word of a possible deal surfaced. Neither company has confirmed a deal is in the works.

PayPal’s offer is said to be around $70 per share, with a deal valued at around $45 billion. It’s unclear how much equity or cash PayPal would use to finance the deal.

Pinterest ended the June quarter with 454 million monthly active users. But its user growth has slowed.

“About 80% of Pinterest’s users are outside the U.S., primarily in India/China, though 78% of its revenues are generated from the U.S.,” Bank of America analyst Jason Kupferberg said in a note to clients.

PayPal Stock: New Marketing Opportunities?
He added: “The potential Pinterest acquisition could allow PYPL to cross-sell between user bases, expand its revenue stream into advertising, and deepen customer relationships, leveraging Pinterest’s extensive data.”

Pinterest is a pinboard-style photo-sharing website. It allows users to create and manage theme-based image collections such as events, interests, and hobbies. All of its revenue comes from advertising.

“Integrating PINS’ experience-based platform into PayPal’s recently rolled out Super App and in-app shopping capabilities through Honey should significantly increase transactions per user,” PayPal stock analyst Bryan Keane from Deutsche Bank said in his report to clients.

#PayPal #pinterest #paypalpinterest #BoyceWatkins

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